Chapter 2

Register as an employer

You’ve considered the position you want to fill and your own responsibilities. It’s time to register as an employer.

a small business owner registering as an employer on a laptop

Registering as an employer may take time, so start the process as early as possible.

Here’s what you need to do:

  • Register online with HMRC to get your employer Pay As You Earn (PAYE) reference number – this can take up to five days.
  • Make sure to register at least two weeks before you start paying your employees, but not too far out as you can’t register more than two months before the first payday.

Understand employment law

The entire employment process is governed by certain laws, so understand them before you begin hiring. Speak with an employment lawyer for specific advice or check a government site to learn more about employment laws and how to comply with them.

The gov.uk page on employing people has some helpful guides on workplace laws.

Small business performance little changed*

Read the full report for Xero's small business insights focusing on several core performance metrics, including sales growth, jobs, time to be paid, and late payments.

UK jobs:+1.0%*

Jobs grew 1.0% y/y in the September quarter. Published: 31 October 2024.

*Xero XSBI data average results for three months to Sep 2024
XSBI

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

How to hire employees

Hiring help can improve your business, and your lifestyle. But it’s a big process. Here are the main things to keep in mind.

  1. Know your employer responsibilities

    You have a duty of care to your employees. Get familiar with your employer responsibilities before you start the hiring.

  2. Register as an employer

    You’ve considered the position you want to fill and your own responsibilities. It’s time to register as an employer.

  3. Write a job description

    You want the perfect employee. They want the perfect employer. Find out how to write a job description that stands out.

  4. The recruitment process

    Now the applicants are lining up. So how do you sort through them all and select the best fit for your business?

  5. Employee onboarding

    Employee onboarding is more than orientation. It’s setting expectations, building relationships, and providing support.

  6. Run payroll for your employees

    Paying your employees right is essential. It’s also a legal requirement. Let’s take a look at the payroll process.

  7. Manage employee evaluations

    Your employees need support too. They need to know if they’re on the right track. Employee evaluations help with that.

  8. Tools and guides for your business

    Now that you’re an employer, you want to strengthen your business. Xero’s got resources and solutions to help.

Download the guide to hiring employees

Learn how to hire employees and how to handle the admin that goes with it. Fill out the form to receive this guide as a PDF.

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